Muras Matters: RTI and Late Payment Penalties

RTI  & Late Payment Penalties


Real Time Information (“RTI”)

Since April 2013 it has been compulsory for all employers to submit payroll information electronically in real time, with reports to be filed on or before payment is made to the employees and a final return to be made after the end of the tax year.


Initially HM Revenue & Customs (“HMRC”) delayed imposing penalties for late submission of in-year returns until April 2014, however this was subsequently extended to 6 October 2014.


Late Submission Penalties

HMRC have now extended further the imposition of late submission penalties of in-year reports for smaller employers only. The introduction of penalties therefore depends on the number of employees:

  • for employers with 50 + employees, late submission penalties apply from 6 October 2014
  • for small employers with fewer than 50 employees penalties apply from 6 March 2015
  • for micro employers with fewer than 10 employees penalties run from 6 April 2016.


HMRC Penalty Notices

Recently HMRC sent a number of incorrect notices to employers stating that reports had been filed late, not filed at all, or that payment was made late. It is important employers are aware of these errors and ensure any such notices are checked carefully.


If you have received an penalty notice and require assistance operating your payroll or appealing a penalty then please contact our Tax Director Jenny Marks.